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What Apple’s app price hike means for local developers

Friday, 4 April 2014 | By Rose Powell

Apple is set to raise the prices of apps sold through the Australian app store by up to 30%, raising the average price from 99 cents to $1.29.


According to the email sent to Apple developers earlier this week, the price hike is due to foreign exchange rate fluctuations.


India, Turkey, South Africa and Indonesia will all see similar rises.


Chris Kettle, the coordinator of Mobile Mondays Brisbane, a community of several hundred app developers, told StartupSmart the price rise was an issue developers would need to factor into their business models.


“On behalf of developers, in my personal opinion, for apps and in-app purchases that are seeking a causal purchase then the price rise will have an impact,” Kettle says, adding it’s too early to know if the extra 30% revenue will offset the reduction in purchases.


“For premium App developers who offer a quality product, I don't think the price rise will stop people purchasing their product.”


Kettle adds the issue could stoke conversation about Apple’s commission on apps sold on their platform.


“People often say they feel Apple taking 30% is a lot. However’ I think the access to a global market of millions and the collecting of revenue on the developers’ behalf is still great value.”


The news comes almost a year after a parliamentary enquiry into why technology prices charged by large tech companies such as Adobe and Microsoft are significantly higher in Australia.